The requests for public comment just keep on coming from the SEC! Earlier this week, the SEC issued a request for public comment seeking input on exchange-traded funds seeking to invest in innovative asset classes or engage in novel investment strategies. The SEC’s announcement notes:

“Innovation in exchange-traded funds depends on a consistent, transparent, and efficient regulatory framework,” said SEC Chairman Paul S. Atkins. “The Commission’s request for comment seeks input from the public on how the U.S. ETF market can continue to grow and innovate while serving investors effectively, and I look forward to reviewing feedback from market participants as we evaluate how to best respond to recent market changes.”

“Exchange-traded funds are a tremendous success story, growing from $4 trillion in 2019 to over $12 trillion at the end of 2025. As ETFs continue to grow and novel strategies emerge, public engagement is essential to answering key questions to make the next years of development a success,” said Brian Daly, Director of the SEC’s Division of Investment Management.

The request for comment includes 27 questions on topics such as Investment Company Act status, Rule 6c-11 and registration process and mechanics. The comment period will be open for 60 days following publication in the Federal Register.

– Dave Lynn